Stran & Company, Inc., a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, announced it has entered into an agreement with Salem Five Bank, providing the Company with a secured revolving line of credit with a principal amount of up to $7 million.
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Andy Shape, President and CEO of Stran, commented, “This new facility further strengthens our balance sheet and provides additional financial flexibility. We look forward to prudently deploying this capital to support our long-term growth objectives. Stran is excited to enter into this relationship with a historied local institution such as Salem Five and grow together in the future.”
Founded in 1855 and headquartered in Salem, Massachusetts, Salem Five Bank is a mutual savings bank with almost $6 billion in assets.
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The secured revolving line of credit is a 12-month, interest-only loan with an interest rate of the prime rate plus 0.5% (currently 3.75%). The amount available under the line of credit is limited by eligible inventory and accounts, and subject to meeting a debt service coverage ratio and minimum net worth. The Company must meet other ongoing affirmative and other obligations during the loan term. The Company may freely draw upon the line of credit subject to Salem Five Bank’s right to demand complete repayment of the withdrawn amounts and incurred interest at any time. The loan is secured by all assets and property of the Company, including inventory held in rented warehouse space on behalf of its customers.
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